Nick Luff having a good chat on Bloomberg and it was upbeat .a good explanation about why RELX has done well and why it should continue....trading from 40 countries servicing 120 countries I think he said.....not really worried about brexit.....will continue with bolt on acquisitions...plenty of organic growth....a nod and a wink for a 2018 buy back .a good cash generative business that should continue to be popular with investors I should say
I note from RNS now has 5.59% of issued shares (including those in treasury) in Treasury which will save on dividends payout by about 5.6%, but not so happy with them buying their own shares when they are at an all time high. As my REL shares are held in an ISA I would much rather have a special div.
Transactions in own shares
RELX PLC announces that today it purchased through UBS Limited 170,057 RELX PLC ordinary shares of 14 51/116 pence each on the London Stock Exchange at a price of 1513.4975 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, RELX PLC holds 64,014,232 ordinary shares in treasury, and has 1,080,548,393 ordinary shares in issue (excluding treasury shares). Since 3 January 2017 RELX PLC has purchased 4,598,945 shares.
I'm thinking it might be an idea to sell a few REL shares to take some profits. Will hang on from the moment though.
I note REL are buying their own shares and putting them in Treasury. Not being cancelled so the only advantage for shareholders is that dividends are not paid on Treasury shares so more cash available for dividends. Interesting that they buy shares mostly a few hundred at a time. Today about 200 trades and similar number yesterday. I suppose if they bought one or two big tranches it would push up SP artificially.
A limit order I put on yesterday evening met a good bit below limit I had set. Got them for at 08:012 met at 1393.6 and SP now 1413 to sell so up 0.65% after purchase dealing charges. REL now my 4th largest share holding by value..
bigmacone " I don't know where you got a dividend of 7.4p"
Sorry for delay in posting. Did not notice yours until today. I have no idea where I got 7.4p, clearly wrong. They reported a 14% increase in dividend to 29.7p.
Yesterday saw a new all time closing high which prompted me to look at latest news. This was yet another own share buy back. Looked at figures more closely. Rounding to nearest 10 thousand, Shares in issue not in treasury 1,103.69 million and 72.88 million in treasury so of total number of shares 6.2% held in treasury. Not cancelled but treasury shares not entitled to dividend so that will save company £21.65 million. I assume they hold so many in connection with employers share schemes. They can only buy shares out of profits. http://www.everymanlegal.co.uk/wpcms/wp-content/uploads/Fact-Sheet-Treasury-Shares.pdf
Above article states having shares in Treasury can improve liquidity.
I am a bit concerned at them buying back when SP so high.
Interesting that yesterdays SP of £12.9 x 1104m = £14,241m close to Market Cap of £14,237.6m quoted by ShareScope. So treasury shares do not seem to count towards Market Cap.
REL now about twice my average value for a company share holding and is up 55% on average purchase cost since first purchase 3 years ago. One of my most profitable investments in the last 5 years.
I can understand changing the name if the company had a bad reputation, but this is not the case. It seems strange that widely recognised brand names are considered to be valuable assets whereas widely recognised company names are considered to be so worthless that you can throw them away. I would suggest that changing the name is, at best, a waste of management time.
dxo, "Can anyone explain the reasoning for the name change."
From their web site:
Simplification of corporate structure, share listings,
and modernisation of corporate entity names
Simplify corporate structure
Increase share price transparency
Modernise corporate entity names
While remaining at least cost/profit neutral for the company, without changing the economic
interests of any shareholder, and without affecting any customer facing brand names
Above from this presentation:
If anyone wondered what happened to their Reed Elsevier shares they have today become Relx Group shares. Still shown as Reed Elsevier in 'My Portfolio' on this site but RELX heading on discussion option. EPIC code stays same which is convenient.
SP been under performing the last 3 months. Let's hope re-branded company does better.
"By John C Burford, Author of Tramline Trading, and Editor MoneyWeek TraderIn these weekly articles, I will highlight a share that I believe has an interesting chart pattern. I am primarily a technical trader and use the methods I have developed ..."
SP fell by 7% from last high then today went up 2.35%. I think now would be a good time to buy. I decided not to sell after results. I think REL will hit new highs in the next month or two. In terms of AER of SP, it is my 5th best share with an AER of 26.8% + yield of 2.3% giving an overall compounded total return of about 29% pa for the last 2 years (it is exactly 2 years since I first bought REL and my unrealised CG is 60.8% on REL).
I Rhigos can see the case for taking some profits but on the whole this is a well led company in a growth sector, expanding steadily year after uear. I am going to stay put unless the management changes.
Since 15 Oct the SP has risen steadily with a trend of 218% pa. REL keeps hitting new all time highs on a regular basis. Steady rise in dividends for the last 3 years. Forecast is for profits to rise sharply. Last reported profit for 2013 was £566m, 2014 forecast is £1588m. This justifies PE ratio of 22.
"Alexander Darwall, of Jupiter European, looks to build a portfolio of world-class firms that can sustain profit growth and margins over the long term.Alexander Darwall, who has run the FUND:09QA:Jupiter European fund for almost 13 years, always ..."
Good figures which have driven up SP to 834.75p a very satisfying +4.18% today. Wizzed straight past Deutsche Bank target of 820p.
I only bought REL shares on 4 March and now up 17.6% in 4.7 months equivalent to an AER of 50.9%! (this is total return, I take dividends as scrip) making it my fastest rising share that I have bought in the last 18 months or so.
Looks like SP has further to go up so will hold for now. If I had more shares or had held for longer I would be tempted to take profits by selling some.
'Shares in Anglo-Dutch publisher Reed Elsevier drop 3.1 percent, top fallers on Britain's FTSE 100 , with traders citing the impact of a UBS recommendation cut and the fact the stock is trading without the attraction of its latest dividend.
UBS cites valuation grounds for its downgrade, to "neutral" from "buy", with the stock having leapt around 60 percent since a trough in June 2012, outperforming a 22 percent rise on the UK benchmark.'
We have had a very good run here but been going sideways for a while now. My fear is that we could easily see a 10% setback in the next month or so and as a result I have taken a nice profit and will sit on the sidelines for a while.
Key Calls - Europe Nick Nelson............................ +44-20-756 81960
C.hanges to Key Calls
Add Reed Elsevier NV
We add Reed Elsevier NV to the European Key Call list. We believe that there are now clearer
signs that the transformation underway at Reed Elsevier in recent years should allow it to
deliver higher quality, resilient revenue, earnings and cash flow growth. In essence, the steps
taken by senior management (be they restructuring or investment) are starting to deliver returns
in terms of performance, and this should lead to greater returns for investors. In our view, this
accelerating growth, and these improving returns, should justify a substantially higher valuation
than the company currently attracts. We believe both the plc and NV lines offer scope for
substantial outperformance, but we would advocate the NV over the plc, given the plcs
p.remium to NV is near all-time highs at 11%. Cash returns potential 7-8% annual cash yield
Management recently announced that the proceeds from the Reed Business Information (RBI)
disposals would be used for share buybacks providing an indication of its likely strategy to
maintain group leverage when it falls below 1.5x from 2013. Re-levering to that level in 2014
could add c9% to long-term earnings, or it could be maintained through smaller annual
buybacks of £400-500m (3-4% of equity, a total 7-8% cash yield). For further details please see
.Reed Elsevier: Delivering returns Alastair Reid, 6 September 2012.
RESEARCH ALERT-Morgan Stanley raises Reed Elsevier target price03 Sep 2012 - 07:59
Sept 3 (Reuters) - Reed Elsevier PLC <REL.L>: * Morgan Stanley raises Reed Elsevier <REL.L> <b>target price to 700p</b> from 620p; rating overweight For a summary of rating actions and price target changes on European companies: Reuters Eikon users, click on [RCH/EUROPE] Reuters 3000Xtra users, double-click [RCH/EUROPE] Reuters Station users, click .1580 ((Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780))
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